All Forum Posts by: Irwin Haddox

Its not my property though. Wholesaling not flipping. 

"Irwin,

I've spent some time thinking about your proposed business model and, also, doing some research and, taking a conservative approach, have concluded that you would be selling real estate and therefore would be subject to real estate sales licensing laws. When you sign a contract to purchase property, you acquire an equitable interest in the property and it is that equitable interest, that is, the right to compel conveyance of the legal [or record] title that you are selling, even if you state you are just assigning a contract right. Under the real estate brokers' law, Title 24, Chapter 29 of the Delaware Code, a person who provides real estate services must be licensed. The statute provides that "real estate services shall also include the marketing and advertising of properties for sale". That is how you are going to find your buyers.

I know this is not the answer you were looking for but you did indicate you want to stay out of trouble."

Now how do I proceed? Do I need a brokers license or a real estate agent license? What are your thoughts?

I posted in wholesale area of bigger pockets. Where else do I meet people? REI clubs charge 150 dollars to talk to people. Unless I can just walk in I suppose. Any better ideas?

I don't really have any money to get started in buy and hold so wholesaling is all I have right now. 

I have some contracts I have put together from samples I found on bigger pockets and elsewhere but I want them reviewed by a professional lawyer with wholesale experience before I use them.   

Every lawyer I call does not even know about assigning real estate contracts to cash buyers in exchange for a assignment fee. They have 0 experience in it because none of them were involved in this kind of transaction apparently. I have called around 20 lawyers so far.

Has this been the same for you? How did you select a lawyer to review your contracts?

I found this tool here https://www.huduser.gov/portal/datasets/fmr.html I wanted to know if anyone used it or if its accurate. What other tools do you use to know how much rents are going for?

This tool is awesome assuming I can get a property management company to confirm the round about estimates provided on huduser.org this is very valuable. With 1,300 top line I can borrow money form a lender and still start making 6% CAP rate today like RIGHT NOW!

Thank you all for the very insightful info. What I learned so far is that I was doing the cap rate wrong its about 100/mo profit with cap rate of around 10% not bad but i can do better. I don't need to budget that much for evictions and I don't need to have a investment property in my area if im going to be hands off anyway (even though it makes me more comfortable). My big concern now is how to get the money to get started. If I do bank loans to finance the 20% down I would need to pay them back around 300/mo which makes the property negative cash flow. how do get started?

I was doing the cap rate wrong i would only put 20% down not pay the full amount in cash so the cap rate would be much higher.

 Wow thanks this is exactly what I wanted to know.